Most franchise experts recommend that the FDD be examined carefully by
A)regulators that specialize in such documents.
B)a franchise attorney and an accountant.
C)everyone associated with the potential startup.
D)suppliers that may be used if the startup is successful.

Question

Quizplus · Accepted Answer

Franchise experts recommend that the FDD (Franchise Disclosure Document) be examined carefully by a franchise attorney and an accountant. This is because a franchise attorney can provide legal advice on the terms and conditions of the franchise, while an accountant can analyze the financial information provided in the FDD. It is important for potential franchisees to have a clear understanding of the financial requirements, obligations, and risks associated with the franchise before making a decision to invest. While it is also important for everyone associated with the potential startup to review the FDD, consulting with a franchise attorney and an accountant is the most recommended course of action. Regulators may review the FDD, but they do not provide personalized advice, and suppliers may not necessarily have the expertise to evaluate the legal and financial aspects of the franchise.

Most Franchise Experts Recommend That the FDD Be Examined Carefully